$25 million investment in dairy farmers – Gippsland

$25 million investment in dairy farmers – Bega Cheese announces

Australia’s largest processor of packaged cheese and parent company of Tatura Milk Industries – Bega
Cheese has announced its plans to invest $25 million over the next three years into sustainability and milk
growth programs for its farmer suppliers.

The initiative is designed to encourage sustainable milk production and investment on-farm in milk growth
projects and build longer term relationships with its suppliers.

Bega Cheese CEO Aidan Coleman said, “The past decade has been challenging for dairy farmers. The
increasing demand for sustainably produced dairy products will underpin future dairy development and is a
core reason for this funding injection”.

“While customers are increasingly placing an emphasis on environmental sustainability and farming
practices, it is important that dairy companies support their farmers in making ongoing gains”.

“The money is available to both current suppliers as well as farmers who wish to join the Bega family”, Mr
Coleman said.

Bega Cheese is encouraging farmers to invest the money into on-farm projects such as energy and irrigation
efficiency upgrades, increased tree planting, dairy shed expansion or purchasing more cows for the herd.

Bega Cheese has allocated the $25 million for the programs, with 3 cpl (milk solids equivalent) available for
sustainability assessments and 2 cpl (milk solids equivalent) available for growth projects. The
implementation of the programs will occur in two parts over the next three years, with a lump sum being
paid to Bega and Tatura Milk suppliers.

Mr Coleman reassured farmers the investment was separate from milk pay rates. “The funds are in addition
to our normal annually announced milk pay rates, which have a proven track record of being highly
competitive,” Mr Coleman said.

Share farmers Maxi and Tameeka Vera from Denison say the initiative will help them to meet growing
consumer demand for more sustainable milk production.

“With increasing pressure on farmers to produce more milk in a competitive environment there is no way
we would have been able to increase production without Bega’s help,” Mr Vera said.